Assignment -
In the lectures of 21 August and 18 September and the tutorials following these lectures (21 August, 18 and 25 September) three segmentation solutions were derived using a dataset from Bank X:
1. A segmentation based on RFM theory
2. A segmentation based on cluster analysis using the balances on different products
3. A segmentation based on cluster analysis using revenue, age and income
These segmentation solutions will each have advantages and limitations. Also, the transactional data contains information of customers at Bank X, which also has advantages and limitations. Please address the two following points in evaluating the data that was used for the segmentation and the three segmentation solutions:
1. Discuss the strength and weaknesses of the data that were analysed and the three segmentation solutions mentioned above
2. Evaluate the use of the analysed data for cluster analysis purposes in terms of ethical considerations. Do you think that banks can use data in this way? Why (not)?
After considering the segmentation solutions that were discussed in class, you should address the following two points (note that for points 3 and 4 you use the data that were also used in the 19 and 26 September tutorials):
3. Bank X would like to use cluster analysis for developing different product strategies for different groups of customers. Based on the knowledge that you have gained please formulate the marketing problem more precisely and clarify which variables should be included in the segmentation solution and why.
4. Develop and report the segmentation solution.
Deliverables: A written report of 5 pages (font size 12, double-spaced, including all graphs and tables). It is recommended to align the structure of the report with the questions; that is, include one section to answer each of the questions.
Attachment:- Assignment Files.rar